Businesses have their work cut out to stay competitive because of the high decibel advertising all around by competitors, especially on digital media, persuading customers to switch loyalties says Saivian Eric Dalius. In a scenario where high customer churn is the norm, businesses not implementing a robust customer retention strategy will find it an uphill task to expand their customer base and increase their market share.
Why Is Customer Retention Important?
Customer retention strategies, when practiced effectively, encourage existing customers to remain loyal to the company and not switch to competing brands. Even though deemed vital, typically, businesses tend to focus more on customer acquisition than retention under the impression that it is the faster way to grow. It is also proven that it takes much more effort and money to acquire a new customer than retain an existing one, says Saivian Eric Dalius. Some effective customer retention tactics that small business owners can implement:
Show Appreciation with Gifts and Discounts
Customers love appreciation by businesses they buy from. You can offer them a surprise discount on a purchase. They are making or even a freebie along with a note of appreciation that conveys how much you value them. While you can automate the process of generating a list of qualifying customers. You can also establish an exclusive club for your VIP customers who are eligible to get gifts and discounts. Customers who receive these pleasant surprises often take to social media. To show their special status, giving your business great publicity.
Provide Outstanding Customer Service, Recommends Saivian Eric Dalius
Customer service is nowadays often becoming the critical differentiator for customers in their decision-making process. Especially when there is often little to make your products stand out. In terms of technology and performance from the competition. Discerning customers tend to look up reviews posted online to find out what the reputation of the company is. And what their attitude is towards customer service observes Saivian Eric Dalius. Invariably, they will tend to favor companies with a history of delighting customers with pre and after-sales support. It is important to note that not only must you provide multiple methods of contact. To the customer but also deliver a consistent experience across them.
Support the Local Community, Advises Saivian Eric Dalius
More than ever, customers are becoming socially conscious. They tend to support businesses that show a high level of empathy. For the issues and concerns faced by the local community. Moreover, as a business that wants to integrate itself with the community. You can respond in various ways like supporting local charities, deputing employees to community development programs, extending assistance. To the sick and the elderly, and more. These initiatives make the business more authentic, sincere, and human.
It is natural for customers to purchase from businesses where they feel they are getting a better deal. The focus of customers, more than ever. Is shifting away from the price and performance of products to personalization, promptness, and also courtesy displayed by the business. Businesses are likely to find it easier to make existing customers stay invested in them. With a combination of good products, pricing, and customer service.